2.10 Joel Palathinkal from Sutton Capital and Alexander Leigh on pitch decks, DEI, and relationships - two-way interview The Tippy Top

Why do start-ups fail?

#1 CB Insights reason: They fail to raise follow-on funding.

But why? Why do they fail to raise follow-on funding?

A brilliant engineering interrogative technique taught to me to establish the root cause of problems is the '5 whys.'

Essentially ask why 5 times, going deeper and deeper until you uncover the real reason.

So, back to start-ups:

1. Why do they fail?

Because they fail to raise follow-on funding?

2. Why?

Because they fail to convince investors.

3. Why?

Because they usually haven't performed.

4. Why?

Because the team is not motivated.

5. Why?

Because there is team conflict and the relationships are not working.

That's of course a hypothetical example but I bet its quite a common one.

Keen to find out more?

Tune into this inaugural two-way interview podcast exclusive with Joel and myself to learn how the VC / Start-up industry really works.

Dr. Joel Palathinkal is a seasoned investor and entrepreneur affiliated with a global network of Single Family Offices, High Net Worth Investors, Endowments, and Venture Capitalists. He's the CEO of Sutton Capital and an LP / Mentor to emerging investment managers. Sutton Capital invests in opportunities focused on Fintech, Real Estate, B2B SaaS, Deep Tech, Space Exploration, Impact Investing, Cleantech, & Climate Change. Early in Joel’s career, he ran technology product innovation in Fintech, Artificial Intelligence, & for the Dept. of Defense. He completed his Ph.D in Modeling & Simulation while he was building flight simulators for the Defense Industry.

Main topics and learnings:-



1. What reviewing 100,000+ pitch decks teaches you:

1.1. First impressions are everything.

1.2. Use Canva is you don't have a designer.

1.3. TAM, Team, Traction. In that order.

1.4. Interview your customers before your VCs do!

1.5. Solve customer problems now AND look 5-10 years ahead.

1.6. Less is more. Use infographics.

1.7. Don't be too creative with the truth.

1.8. Contact information on page 1!

1.9. The pitch deck's job is just to pique interest.

1.10. Don't try sell a piece of old rope. Focus on getting the business right first.



2. Serving the under-served:

2.1. All disruptive companies focused on strong customer pains.

2.2. Under-served markets are untapped markets.

2.3. Diversity, Equality & Inclusion (DEI) - don't focus negative energy on it. 'Stay on mission.'



3. Start-ups are built on solid relationships:

3.1. VC/start-up is a long-term relationship. Your behaviour comes full circle.

3.2. Post-covid: Don't be transactional. Add value first. Be truly philanthropic.

3.3. Take time to pick co-founders. Pick people who are different and better than you.



It's been said that VC / start-up would be loads easier if we didn't have to work with people.

But it would also be really boring.

[Good] people are what make the sector so exciting and dynamic.

So surround yourself with great people and let the good times roll!

Hit 'like' if you agree.



Alex @thetippytopblog



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